No, as long as no undeserved molestation has resulted from such surveillance, it does not qualify for "Police State".
Sorry, but having Big Brother observe each and every one of us through the telescreen is absolutely Police State. Being put on "a list" is unquestionably a threat, even if nobody is at liberty to say just what being on that list does. (It does do something, right? I mean, you're not just supporting Big Government spending your tax dollars to make lists and throw them away and then making more lists, right?)
You'd be OK with the government having "a list" of every gun owner in the country, right? Because at this point, I'm pretty sure the NSA has one. Those forms that sellers mail in on toilet paper go somewhere.
Snowden does not mention it
Oh, he doesn't?
It is interesting to note that this rule specifically avoids fingerprinting users believed to be located in Five Eyes countries, while other rules make no such distinction. For instance, the following fingerprint targets users visiting the Tails and Linux Journal websites, or performing certain web searches related to Tails, and makes no distinction about the country of the user
-- https://www.schneier.com/blog/... (emphasis added)
Oh dear, it looks like you might be right. XKeyscore wasn't from the UK, it's run right here in the good ol' US of A. Against fellow Americans, "without distinction".
not only have we seen any evidence of innocents prosecuted
Absence of Evidence is not Evidence of Absence, especially when the government has demonstrated the ability to destroy evidence and immediately kill any court proceeding for "national security". Al Haramain's lawyer had their warrantless wiretap transcript mailed to him, the government destroyed that evidence and killed their lawsuit repeatedly due to "lack" of evidence.
we have not even seen allegations
What would such an allegation look like? How would we tell it apart from the waves of everyone else getting released for false convictions, because they've only been in prison since the NSA started spying on everyone instead of being imprisoned for 30 years?
Maybe it'd look like the IRS denying your nonprofit status application? I wonder if we'll ever find those emails...